The journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
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Embarking on the journey to homeownership is an exciting venture, but it can also feel overwhelming. Amidst the excitement of browsing online listings...
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Submitting a formal loan application is the pivotal moment in the homebuying journey where hopeful pre-qualification transforms into a concrete financ...
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The journey to homeownership is an exciting one, but it often begins with a process that can seem complex: the mortgage application. Understanding the...
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Understanding how a loan officer is compensated is a crucial, yet often overlooked, part of the mortgage journey. Many borrowers focus solely on inter...
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Securing a mortgage is one of the most significant financial journeys a person can undertake, and the relationship with your lender sits at the heart ...
Read MoreTypically, lenders look for at least two years of consistent employment in the same field or industry. This doesn’t always mean you must have been with the same employer for two years, but you should be able to show continuous employment without significant gaps.
A balloon mortgage might be a strategic choice for a borrower who:
Has a high, certain future income (e.g., from a trust or bonus).
Is certain they will move before the balloon date (e.g., a short-term job relocation).
Is an investor who plans to renovate and quickly sell a property (“flipping”).
Cannot qualify for a traditional mortgage but expects their financial situation to improve significantly before the balloon payment is due.
# Property Taxes and Escrow Accounts
Absolutely. You have the right to choose your own homeowners insurance provider, even with an escrow account. If you find a better or cheaper policy, you simply need to provide your lender with the new insurance company’s information and proof of coverage. Your lender will then update the records and adjust your escrow payments accordingly during the next analysis.
An escrow account is held by your mortgage servicer to pay for your property taxes and homeowners insurance on your behalf. You pay a portion of these annual costs with each monthly mortgage payment. The servicer then manages the timely payment of these bills. Your escrow payment is reviewed annually, and your monthly amount may change if your tax or insurance premiums increase or decrease.
